Colorado State Employment Laws
The state of Colorado, including various cities and counties within the state, have restrictions on what can be reported in a background screening report beyond what the Fair Credit Reporting Act (FCRA) dictates.
| Restriction | Explanation |
|---|---|
| Ban-the-Box Provisions: State Public Employees | FOR PUBLIC EMPLOYERS ONLY: State agencies, including state licensing agencies, are prohibited from performing a background check until the agency determines the applicant is a finalist for the position or the applicant receives a conditional job offer. See the statute here for more information. Notable exceptions: Exceptions include positions with the Department of Corrections and the Department of Public Safety, as well as certain positions as indicated in the statute. |
| Use of Credit Report | Effective July 1, 2013, per SB 13-018: An employer cannot use consumer credit information to evaluate an applicant/employee for a job unless the law specifically permits this information to be used. See the Exceptions of Note for those who are entitled to a credit report or may only request and use a credit report if it is "substantially related to the position” being filled. If a credit report is obtained under the substantially related use, then the employer must provide to the applicant/employee a notice that a credit report will be obtained. Evidentially no special notice is needed for employers who are banks, financial institutions or those required by law to obtain credit reports. CRAs should examine their Disclosures and Authorization forms. See the statute here for more information. Notable exceptions: The following employers may, as a matter of right, request credit reports: 1) Banks or financial institutions. 2)Employers required by law, other employers may only request and use a credit report if it is “substantially related to the position” being filled. The statute provides what appears to be an exclusive list of what constitutes substantially related as follows: 1) Executive and management personnel or officers 2) Employees who constitute professional staff to executive and management personnel (officers of the corporation are not mentioned, but they may be assumed to also occupy executive or managerial positions). AND ONE OR MORE OF THE FOLLOWING ALSO APPLY TO THOSE POSITIONS: 1)The person sets the direction or control of a division, unit or agency of a business. 2) Has a fiduciary relationship with the employer. [The statute does not define fiduciary relationship and is a very vague term because all employees have some level of fiduciary duty to their employers.] 3) Access to customers’, employees’, or employer’s personal or financial information, other than information customarily provided during a routine retail transaction. 4) Authority to issue payments, collect debts or enter into contracts. The law also states that a credit report is substantially related if the position (and need not be part of an executive management team, such as staff) involves contracting with defense, intelligence, national security or space agencies of the federal gov. |
| Use of Social Media Password Information | An employer may not suggest, request, or require an employee or applicant disclose to disclose any user name, password, or other means for accessing the employee's or applicant's personal account or service through the employee's or applicant's personal electronic communications device. An employer may not compel an employee or applicant to add anyone, including the employer or his or her agent, to the employee's or applicant's list of contacts associated with a social media account. See the statute here for more information. |
| Use or inquiry of sealed, expunged, pardoned or erased records | Employer shall not ask or require disclosure of sealed records and the applicant cannot be denied employment for failure to disclose sealed records. See the statute here for more information. |
